Question

During this week you have to write about the differences and similarities between a for-profit, non-profit  healthcare organizations; which one best describes Mercy hospital ( our case study). Add any information about the Affordable Care Act that may affect the governing structure of a non-profit hospital.

Answer 1

Profit health care organizations

organizations the providers of funds have an ownership interest in the organization and earn dividends based on what is left when the cost of goods and of carrying on the business is substracted from the amount of money taken in

Non-for-profit healthcare organization

This type of organization is financed by funds that come from several sources, but the providers of these funds do not have an ownership interest. profits generated in the non-profit organization are frequently funneled back into the organization for expansion or capital acquisition

Differnces between profit and non-profit organizations

Non-profit healthcare organizations	Profit health care organizations
Viewed as charities, often affiliated with particular religious organizations Provide more uncompensated care than profit hospitals Non-profit hospitals tend to be located in communities with less poverty, higher income and fewer uninsured patients don't pay federal income , state or property taxes	Profit hospitals are either owned by investors or stakeholders of a publicly traded company tend to serve lowr-income populations allocate more resources to advertising and marketing

Similarities between Profit and Non-for-profit health care organizations

There is no difference in the environment , operational efficiency, or standard of care between non-profit and profit health care organizations

Mercy hospital is a non-for-profit catholic healthcare organization located in the midwestern United States

The Affordable Care Act officially known as patient protection and affordability act passed in 2010, to assure that all Americans have access to affordable health insurance by reducing barriers to obtaining health coverage as well as accessing needed healthcare services.

The Patient Protection and Affordability Care Act reform provisions include :

• Value Based Purchasing: A payment based methodology that rewards the quality of care through payment incentives and transparency. In VBP, value can be broadly considered to be a function of quality,efficiency, safety and cost
• Accountable Care Organizations: groups of providers and suppliers of service who work together to better co-ordinate care for medicare patinets (does not include medicare advantage) across care settings
• Bundle payments: A payment structure in which different health care providers who are treating the patient for the same or related conditions are paid an overall sum of taking care of that condition rather than being paid for each individual treatment , test or procedure. In doing so, providers are rewarded for coordinating care,preventing complications and errors and reducing unnecessary or duplicative tests and treatments
• The medical home:
• Health Insurance market place: